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2023-03-31-accounts

NorthCare Charity

Annual report and accounts for the year ended 31[st] March 2023

Registered charity number 1049226

Principal office: Trust Executive, Stott Lane, Salford M6 8HD

NorthCare Charity Annual Report 2022/23

Page 1

Sections Sections Page
1 Foreword 3
2 Administrative details 3
3 Professional Advisers 3 - 4
4 Trustee 5
5 Structure, governance and management 6
6 Risk Management and reserves policy 7
7 Fundraising 7 - 9
8 Objectives and strategy 10
9 Annual review 11 - 12
10 Financial review 13 - 16
NorthCare Charity Annual Accounts
Statement of Trustee’s Responsibilities
17
Independent Auditor’s Report to the members of the NorthCare 18 - 21
Charity
Statement of Financial Activities 22
Balance Sheet 23
Statement of Cash Flows 24
Notes to the Accounts 25 - 34

NorthCare Charity Annual Report 2022/23

Page 2

Report of the Trustee for the year ended 31 March 2023

Foreword

The Corporate Trustee is pleased to present the Charitable Funds Annual Report together with the audited accounts for the year ended 31 March 2023. In this financial year, with thanks to the generosity of the public and organisations that support our Charity, £1,772k of income was received. During the year, £3,920k was spent by the Charity to complement the services provided by the Foundation Trust.

The Charity’s Annual report and accounts have been prepared by the Corporate Trustee in accordance with Part 8 of the Charities Act 2011 and the Charities (Accounts and Reports) Regulations 2008. The Charity’s Report and Accounts include all the separately established funds for which the Northern Care Alliance NHS Foundation Trust is the sole beneficiary.

Administrative Details

The Corporate Trustee of the Charity is the Northern Care Alliance NHS Foundation Trust (NCA). The members of the Foundation Trust Board who represented the Corporate Trustee during the year on the Charitable Funds Committee (CFC) were as follows:

Professor Eileen Fairhurst - Chairman, NCA (from Nov 2022)
Professor Chris Reilly - Non-executive Member
Mrs Christine Mayer CBE - Non-executive Member
Dr Hamish Stedman - Non-executive Member
Mr Kieran Charleson - Non-executive Member and Chair of CFC
Mr Tim Crowley - Non-executive Member
Mrs Carmen Drinkwater - Non-executive Member
Mr Ian Moston - Chief Financial Officer (CFO), NCA (to August 2022)
Mr Craig Carter - Interim CFO, NCA (August to December 2022)
Mr Ian Boyle - CFO, NCA (from December 2022)
Mr Jack Sharp - Chief Strategy Officer, NCA

Professional Advisers

The Charity had access to the following professional advisers during the financial year :

Bankers National Westminster Bank PLC
Lloyds Bank PLC Government Banking CST
King Street PO Box 2027
Manchester Parklands
M2 4LQ De Havilland Way
Bolton
BL6 4YU

NorthCare Charity Annual Report 2022/23

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Investment Fund Statutory Auditors, Solicitors Managers Chartered Accountants Investec Wealth & Mazars Hill Dickinson Investment Limited 1 St Peters Square 1 St Paul’s Square 2 Gresham Street Manchester Old Hall Street London M2 3DE Liverpool EC2V 7QN L3 9SJ RBC Brewin Dolphin Ltd. 1 The Avenue Spinningfields Square Manchester M3 3AP

Salford Royal NHS Foundation Trust General Charitable Fund was registered with the Charity Commission on 15 September 1995. The Charity is a public benefit entity, i.e. an entity whose primary objective is to provide goods or services for community or social benefit and where any income and endowments have been received with a view to supporting the entity’s primary objective rather than for a financial return to equity holders.

The Charity formally adopted the name of the NorthCare Charity in November 2020 to reflect the anticipated expansion of the Corporate Trustee to include Fairfield General Hospital, Rochdale Infirmary and the Royal Oldham Hospital.

The Charity is constituted of 25 Specific Charities (2021/22: 25) further devolved into 301 Designated Funds (2021/22: 300). The Charity expects at least one third of the opening balances to be spent within the year and an annual review is carried out to check whether there has been any movement on the funds. Where this has not been the case, we contact the Fund Holders who may agree that the funds be transferred to a similar fund within their directorate; this would then enable them to find a potential use for the funds. No such transfers took place in this year.

Fund Holders can request for funds to be held in their account if they have a specific project they are raising funds for. They are able to do this by applying to the Charitable Funds Committee for approval of the project, timeframe and funding amount.

The notes to the Annual Accounts distinguish the types of funds held and disclose separately all material funds.

Charitable funds received by the Charity are accepted, held and administered as funds and property held on trust for purposes relating to the health service in accordance with the National Health Service Act 1977 and the National Health Service and Community Care Act 1990 and these funds are held on trust by the corporate body.

NorthCare Charity Annual Report 2022/23

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Trustee

The Northern Care Alliance NHS Foundation Trust is the Corporate Trustee of the Charity governed by the laws applicable to Trusts, principally the Trustees Act 2000 and the Charities Act 2011.

The Foundation Trust’s Board of Directors devolved responsibility for the ongoing management of the funds to the Charitable Funds Committee which administers the funds on behalf of the Corporate Trustee. This Committee has its own terms of reference and a membership compromising of all non-executive directors of the Trust Board, the Chief Strategy Officer and Chief Finance Officer, plus supported, as required, by Care Organisation Chief Officers and/or Directors of Finance and representatives of the current investment advisers.

The Charitable Funds Committee met five times during the financial year with attendance as follows:

Trust Board Non-Executives and Members of the CFC May-22 Aug-22 Dec-22 Jan-23 Mar-23
Mr Kieran Charleson(Chairman of CFC) Y Y Y Y Y
Mr Tim Crowley N N Y Y N
Mrs Carmen Drinkwater Y Y Y Y Y
Mrs Christine Mayer CBE(Interim Chairman of NCA to Nov 2022) Y Y N N Y
Prof Eileen Fairhurst MBE(Chairman of NCA from Nov 2022) N/A N/A N N Y
Dr Chris Reilly Y Y Y Y N
Dr Hamish Stedman Y Y Y Y Y
Mr Ian Moston(Chief Finance Officer of NCA to August 2022) Y N/A N/A N/A N/A
Mr CraigCarter(Interim CFO Augto Dec 2022) N/A Y N/A N/A N/A
Mr Ian Boyle(CFO of NCA from December 2022) N/A N/A Y Y Y
Mr Jack Sharp (Chief StrategyOfficer of NCA) N Y Y Y Y

The Committee is supported by the Group Head of Financial Control and the Head of Fundraising. Representatives of the Investment Fund Managers and the External Audit team attend as required to provide specialist advice, feedback and support.

The Fundraising Management Group, under a scheme of delegated authority approved by the Corporate Trustee, has responsibility for the day-to-day management of the Charitable Funds. Delegation of the responsibility for approving expenditure is set out in the Foundation Trust’s Standing Orders and the Charitable Expenditure policy approved by the Committee.

The Group Head of Financial Control acted as the principal officer overseeing the day-today financial management of the charitable funds during the year.

NorthCare Charity Annual Report 2022/23

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Structure, Governance and Management

The Charity’s General Fund was established using the NHS Charitable Funds’ Model Declaration of Trust and all funds held on trust as at the registration date were either part of that unrestricted fund or registered as separate funds under the main Charity. Subsequent donations and gifts received by the Charity that are attributable to the original funds are added to those fund balances within the existing Charity.

The Corporate Trustee fulfils its legal duty by ensuring that funds are spent in accordance with the objects of each fund and by designating funds the Corporate Trustee respects the wishes of the donors.

Where funds have been received with specific restrictions set by the donor a restricted fund is established.

The charitable funds available for spending are allocated to specialties within the Trust’s management structure. Each allocation is managed by use of a designated fund within the general unrestricted fund. For example within the general unrestricted fund of General Surgery and Gastroenterology Department Fund there are designated funds that include research and development in surgery, intestinal failure and surgical critical care.

Non-executive members of the Board are appointed by the Council of Governors and Executive Members are subject to recruitment by the Board of Directors. Members of the Board and Charitable Funds Committee are not individual trustees under Charity law but act as agents on behalf of the Corporate Trustee.

Acting for the Corporate Trustee the Charitable Funds Committee is responsible for the overall management of the Charitable Funds. The Committee is required to:

The accounting records and day to day administration of the funds are dealt with by the Fundraising Department located in Chatsworth House, Roach Bank Road, Bury, BL9 8RN.

NorthCare Charity Annual Report 2022/23

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Risk Management and reserves policy

The major risks to which the Charity is exposed have been identified and considered. There are systems in place to mitigate those risks. The most significant risks identified are possible losses from the fall in the value of the investments and the level of reserves available to mitigate the impact of such losses. These have been carefully considered and there are procedures in place to regularly review the investment policy and to ensure that both spending and financial commitments remain in line with income.

The Charity’s income and expenditure is monitored on a monthly basis to record trends and make recommendations to the Charitable Funds Committee as part of the risk management process.

Fundraising Highlights

At NorthCare Charity we are incredibly grateful to everyone that supported in 2022/23 whether it was fundraising, gift in kind, volunteering or raising awareness. Everyone has helped to develop the charity and support our aim to help Northern Care Alliance (NCA) NHS Foundation Trust deliver outstanding care across Bury, Oldham, Rochdale and Salford by funding innovative equipment, education, research and wellbeing activities.

The fundraising team worked to engage with fundholders to increase the spending of existing funds. A new charity expenditure policy was launched and a communications strategy implemented. 137 applications were received and enabled funding to benefit services across the trust. There was greater access to education and training to help develop staff and volunteers’ skills. Outside spaces and staff rest areas were upgraded to help improve wellbeing. A cutting-edge Ret-Cam was purchased for the paediatric service at Royal Oldham which helped create greater efficiency in diagnosis and treatment of some of our youngest patients. The new Centre for Clinical Care Research was funded to pilot this exciting new area of research within our trust.

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In June we launched our first major appeal for £1.4 million to support the build of a state-of-the-art RAPTOR operating theatre in the Greater Manchester Major Trauma Hospital at Salford Royal Hospital. RAPTOR stands for R esuscitation, A ngiography , P ercutaneous Techniques and O perative R epair. The first of its kind in the UK, the purpose-built theatre has been designed to treat patients with multiple life-threatening complex trauma injuries in one place. By removing time consuming transfers between departments, thousands of lives will be saved across the whole of the North West region.

Fundraising got off to a great start with support from local companies including Creamline Dairies and HCC Solicitors. Community groups have held quiz nights, bake sales, summer fairs and fashion shows. Individuals took on a variety of challenges including the Great Manchester Run, Three Peaks and bungee jumps.

Dylan Kiss, who lost his mother in the Manchester Arena bombing in 2017, pledged his support alongside his friend Sam Geddes. They held a charity football match in the summer and are planning more fundraising in 2023.

Through the support of NHS Charities Together we were able to purchase picnic benches for all our main sites. The team at Bouygues-ES took on the flat pack challenge to make up the benches before they were put in place. Thanks to their teamwork staff enjoyed the best of the summer weather while taking a chance to rest and recharge between shifts.

Laura-Jayne Derbyshire ran the Manchester Half Marathon following successful chemotherapy and a lumpectomy for breast cancer. Laura received treatment from Specialist Breast Physiotherapists at Salford Royal Hospital, using a ‘Deep Osciliation Therapy’ (DOT) machine. She described the treatment, which breaks down scar tissue and encourages the body to drain lymphatic fluid, as “a pot of gold at the end of the rainbow.” With only one machine available, Laura decided to fundraise for another one and hit her target in late 2022.

NorthCare Charity Annual Report 2022/23

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A charity football match organised by the family of a seven year-old stroke survivor raised funds for the stroke service at Salford Royal. Lucy Strickleton had life-saving treatment, followed by surgery in November 2021, following a cardiac arrest, a stroke and two blood clots developing on her brain, aged only six. She defied all odds by regaining movement in her left side, which was impacted by the stroke, in her leg, then her arm and face, and she has been progressing steadily since. Her dad, Dave wanted to show his appreciation so arranged the charity football match at Bolton Wanderers Football Club.

For the first time in a few years our regular fundraisers where able to plan and hold events across the year. Ferringo Fest returned to Elton Vale Sports club, Bury in aid of the Haematology ward.

The League of Friends for Royal Oldham Hospital were able to have regular meetings and were back selling books, holding coffee mornings and raffles. They are using the funds to support improvements to staff areas and enhance wellbeing.

Staff across Northern Care Alliance joined in the fundraising with raffles, tombola’s and cake sales. Some went much further in their efforts by taking on challenges like a virtual trek across South Asia, bungee jumps, skydives and fun runs. Three of the team from the Manchester Centre for Clinical Neurosciences went all the way to Berlin to run the marathon to support the development of research at The Geoffrey Jefferson Brain Research Centre.

NorthCare Charity Annual Report 2022/23

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Objectives and Strategy

The Charity’s main fund has NHS wide objectives as follows:

‘The Trustee shall hold the trust fund upon trust to apply the income, and at their discretion, so far as may be permissible, the capital, for any charitable purpose or purposes relating to the National Health Service’.

This is explained in more detail in the aims of the Charity approved by the Corporate Trustee which are:

To enhance the services provided by the Northern Care Alliance NHS Foundation Trust by:

Ensuring that:

The Trustee has due regard to the Charity Commission guidance on public benefit when reviewing and confirming these objectives.

NorthCare Charity Annual Report 2022/23

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Annual Review

During the year the funds continued to support a wide range of activities benefiting both patients and staff. In general they are used to purchase goods and services that go beyond the scope of the NHS. For example, during the year, the charitable funds were used to purchase specialist equipment and to improve the patient experience. The Charity’s funds also help to advance education and training of staff by providing assistance for the costs of attendance at courses and conferences. The funds are also used to support medical research with an aim to promote health and improve treatment and care for patients. During the year the Charity’s funds have supported the equipping of a RAPTOR theatre (Resuscitation, Angiography, Percutaneous Techniques and Operative Repair) and the building of a helipad on the new Greater Manchester Major Trauma Hospital located at Salford Royal Hospital.

Grants

Grants are normally made from the Charity’s unrestricted funds – these comprise of two elements:

Reserves Policy

The Charity maintains a policy which states that each fund should spend at least one third of its opening balances in the year unless there is an approved policy to hold balances for future use. The Corporate Trustee’s strategy is to credit investment income to restricted funds with the proportion relating to unrestricted funds being held in the Specific Donations General Fund. During the year there was investment income of £172k (2021/22: £110k). The charity saw £381k net losses (realised and unrealised) on investments (2021/22: net gains of £173k).

The Trustee calculates the free reserves as that part of the Charity’s unrestricted income funds that is freely available after taking into account designated funds which have been

NorthCare Charity Annual Report 2022/23

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earmarked for specific purposes. The reserves currently stand at a deficit of £470k and are calculated as follows:


Total unrestricted funds
Less designated funds
Total free reserves		 £000s
3,705
(4,175)

(470)

The deficit in the free reserves is due to the timing of the funds provided for the equipping of the RAPTOR theatre and the building of the helipad. The position is kept under review by the Committee during the year and it is expected that the reserves will be replenished during 2023/24.

Designated funds are service specific and considered to be committed.

The Trustee intends that designated funds are spent within a reasonable period of receipt. The Trustee foresees a need to maintain reserves as follows:

£000s
Provision for 1 year normal charitable expenditure 408
3 months management and administration costs 103
Total reserve requirement
 511

Due to the deficit in reserves at the 31[st] March the Charity’s reserves falls short of the reserve requirement by £981k.

The Trustee continues to review the balances held in designated funds to determine whether these funds are likely to be committed in the near future and the extent to which there is a continuing need identified for any particular designated fund(s). In the event that the need identified for any designated funds no longer exists, those funds will be redirected to the general fund.

This policy is reviewed each year.

Future Plans

The main aim of the Charity is to help the Northern Care Alliance deliver outstanding care across Bury, Oldham, Rochdale and Salford by funding innovative equipment, education, research and wellbeing support. It aims to enhance the services and experience of patients and staff across the Northern Care Alliance, beyond the scope of the NHS.

NorthCare charity has developed a strategy that covers the period 2020/21 to 2024/25 and combines a place-based approach and a focus on specialist services. The strategy sets out charitable income targets for the five-year period, the investment required to establish a dedicated fundraising function and how the strategy will be mobilised.

The Charity will continue to closely review the performance of its investments and the impact of the on-going war in Ukraine and other market pressures.

NorthCare Charity Annual Report 2022/23

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Financial Review

The annual accounts for the Charity for 2022/23 include comparator financial information for the previous financial year.

The net assets of the Charitable Funds as at 31 March 2023 were £4.7 million (2021/22: £7.2million). The overall decrease in net assets of £2,529k is largely attributable to the funding of the RAPTOR theatre and Helipad in year (£3,100k), other expenditure of £820k and net loss on investments of £381k, partially offset by income of £1,772k.

Income

The Charity continues to rely on donations and investment income for its main source of funding. Donations and legacies account for 90% of the Charity’s 2022/23 income with investment income making up 10%.

Overall income for the year decreased from £2,908k to £1,772k compared to 2021/22. £1,900k of the 2021/22 income related to the acquisition of the funds of the Pennine Acute Hospitals Charity. Income excluding the acquisition of Pennine Charity funds increased from £1,008k to £1,772k. The Charity received income of £457k from legacies in 2022/23 (2021/22 £234k).

The financial year saw increased instability due to the war in Ukraine and cost of living crisis. Despite this the investment income earned during the year (£172k) was higher (56%) than that received in the previous year 2021/22 (£110k). This is partially due to £38k of interest received on cash at bank (2021/22 £0k).

Expenditure

The Charity’s total expenditure for 2022/23 was £3,920k, an increase of £3,338k on the expenditure reported in the previous financial year. The main reason for the increase in expenditure is due to the funding provided towards the equipping of a RAPTOR theatre and the building of a helipad on the new Greater Manchester Major Trauma Hospital located at Salford Royal Hospital.

Medical Research

£141k was spent from the research funds during the year, an increase from £47k in 2021/22. £35k related to the Trust’s annual management charge for administering the research funds.

The increase is mainly due to funding provided for research into Wearable Medical Devices (£76k) and for staff costs funded for the Centre for Clinical & Care Research (£21k).

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Purchase of Equipment

Expenditure on equipment increased to £1,197k in 2022/23, a significant increase on the previous year (£19k). The increase is largely due to the funding provided for the equipping of the RAPTOR theatre (£1,100k) and the purchase of a Retinal Imaging System for the Neonatal team at the Royal Oldham Hospital (£60k).

Staff Education and Welfare

The Charity incurred expenditure of £32k on staff education and welfare in 2022/23, a decrease from 2021/22 where expenditure was £112k. Providing access to training and development for staff beyond mandatory requirements gives opportunities for staff to establish wider professional networks, to receive training and development from leading individuals working in their chosen specialty and promotes better, safer care for patients. The Charity purchased furniture and equipment to enhance staff areas to provide access to wellbeing spaces both inside and outside.

Patient education and welfare

The Charity incurred expenditure of £2,129k (2021/22 £156k) in enhancing the patient education and welfare. The increase is largely due to the funding provided for the building of the Helipad (£2,000k).

Management Costs

The Charity has no directly employed staff and relies on the Trust to provide administrative and financial services for which it received a charge of £35k in the current financial year (2021/22 £35k). The service includes the day-to-day management of the funds and the preparation of all statutory reports and returns. All funds held for the purposes of research have been charged a fair share of the management charge reflecting the resource required to administer these funds. These costs have been allocated to funds and are included in the above costs for equipment, research, staff and patient related funds.

In addition to this, fundraising costs of £382k (2021/22 £208k) have been incurred this financial year, these costs represent the salaries incurred by the fundraising team as well as costs incurred for marketing and fundraising event costs. This increase reflects the Charity’s strategy to increase investment in fundraising activities.

Investments

The Charity’s investments are managed by the investment managers on a discretionary basis with an objective to provide a balance between capital growth and income whilst maintaining a medium level of risk. The Charitable Funds Committee receives regular updates from the investment advisers including formal quarterly reports and uses this information to review and confirm the policy on managing the portfolio.

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The Corporate Trustee has adopted an ethical investment policy for the Charity as follows:

‘As the Trust is required, as part of the NHS, to promote health and to provide healthcare, there shall be no investment in companies or other organisations whose main or principal business is perceived as injurious to health or is life threatening. Included within this broad criterion are firms involved in the manufacture of cigarettes, alcoholic beverages, armaments, explosives or guns.

The investments saw unrealised losses due to increased market instability caused by the war in Ukraine and cost of living crises. The investment portfolio experienced an overall loss in value of £381k reflecting these market conditions (2021/22: £173k gain).

The investment managers were paid management fees totalling £29k during the year (2021/22: £28k).

In totality the final investment portfolio was £411k lower than at the end of 2021/22.

Cash Held on Deposit at 31 March



At the Government Banking Service

In Lloyds

Sub-Total

As part of investment portfolio

Total
 2023

£000s

1,232

1,096

2,329

107

2,436
 2022
£000s
796
987
1,783
192
1,975

Cash balances were higher at 31[st] March 2023 than the previous year. This is largely due to income received in year and an increase in creditor balances relating to the RAPTOR Theatre and Helipad. Cash Outflow is expected for these in 2023/24.

Cash held as part of the investment portfolio is held in nominee accounts with Investec Wealth and Investment Limited (£42k) and RBC Brewin Dolphin (£65k).

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As always

The Corporate Trustee would like to thank all patients, relatives, members of the public and other supporters who have made charitable donations during the year.

Approved on behalf of the Corporate Trustee

Signed

Mr Geoff Little OBE Date: 23rd January 2024

Chair of the Charitable Funds Committee

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NorthCare Charity Accounts 2022/23

Statement of Trustee's Responsibilities

The Charities Act 2011 requires Trustees to prepare financial statements for each financial year. The Trustee has to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 102 the Financial Reporting Standard applicable in the UK and Republic of Ireland.

The Trustees must not approve the financial statements unless it is satisfied that they give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources, including the income and expenditure, of the Charity for that period.

In preparing these financial statements, the Trustee is required to:

· State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements.

The Trustee is responsible for keeping adequate accounting records that are sufficient to show and explain the Charity’s transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

By Order of the Trustee

Mr Geoff Little OBE Chair of the Charitable Funds Committee

Mr Craig Carter Interim Chief Financial Officer

Date: 23rd January 2024

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Independent auditor’s report to the members of the NorthCare Charity

Opinion

We have audited the financial statements of NorthCare Charity (the ‘charity’) for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the statement of Cashflows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustee’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustee with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Trustee’s report, other than the financial statements and our auditor’s report thereon. The trustee is responsible

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for the other information. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustee’s Report.

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of the Trustee

As explained more fully in the trustee’s responsibilities statement set out on page 5-6, the trustee is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustee determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustee is responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustee either intends to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144*of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Based on our understanding of the charity and its activities, we identified that the principal risks of non-compliance with laws and regulations related to related to the Charities Act 2011, the Charities Statement of Recommended Practice, UK tax legislation, health and safety regulation, anti-bribery, corruption and fraud, money laundering, and we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Charities Act 2011.

We evaluated the trustee’s and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to use of restricted funds, and significant one-off or unusual transactions.

Our audit procedures were designed to respond to those identified risks, including noncompliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:

Our audit procedures in relation to fraud included but were not limited to:

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There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of the audit report

This report is made solely to the charity’s trustee, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustee those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustee as a body, for our audit work, for this report, or for the opinions we have formed.

Signed: David Hoose (Jan 24, 2024 07:48 GMT)

David Hoose (Senior Statutory Auditor) for and on behalf of Mazars LLP Chartered Accountants and Statutory Auditor 58 The Ropewalk

Nottingham

NG1 5DW

Date: Jan 24, 2024

Mazars LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

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STATEMENT OF FINANCIAL ACTIVITIES (SoFA) for the year ended 31 March 2023

Unrestricted
Restricted
Endowment
Total
Funds
Funds
Funds
Funds
Note
£000
£000
£000
£000
Income and endowments from:
Donations and legacies
3
1,599
1
0
1,600
Income from investments
6
149
23
0
172
Donation (Acquisition of Funds from Penni
0
0
0
0
Total income and endowments
1,748
24
0
1,772
Expenditure on:
Raising funds
4
(403)
(9)
0
(412)
Charitable activities
4
(3,494)
(14)
0
(3,508)
Total Expenditure
(3,897)
(23)
0
(3,921)
Net gains/ (losses) on investments
5
(399)
18
0
(381)
Net income/ (expenditure)
(2,548)
19
0
(2,531)
Net movement in funds
(2,548)
19
0
(2,531)
Reconciliation of funds
Funds brought forward
6,255
920
11
7,186
Total funds carried forward
3,705
940
11
4,655
2022/23		 2022/23 2021/22
Unrestricted
Restricted
Endowment
Total
Funds
Funds
Funds
Funds
£000
£000
£000
£000
898
0
0
898
98
12
0
110
1,433
467
0
1,900
2,429
479
0
2,908
(233)
(3)
0
(236)
(323)
(23)
0
(346)
(556)
(26)
0
(582)
135
38
0
173
2,008
491
0
2,499
2,008
491
0
2,499
4,246
429
11
4,686
6,255
920
11
7,186

NorthCare Charity Annual Report 2022/23

Page 22

Balance Sheet as at 31 March 2023

Unrestricted Restricted Endowment Total Total
Funds Funds Funds Funds Funds
2022/23 2021/22
Note £000 £000 £000 £000 £000
Fixed Assets
Investments 4,642 940 11 5,593 6,004
Total Fixed Assets 5 4,642 940 11 5,593 6,004
Current Assets
Debtors 21 0 0 21 15
Cash at bank and in hand 2,332 0 0 2,332 1,787
Total Current Assets 7 2,353 0 0 2,353 1,802
Current Liabilities
Creditors: Amounts falling due within one year 8 (3,290) 0 0 (3,290) (621)
Net Current Assets (937) 0 0 (937) 1,181
Total Assets less Current Liabilities 3,705 940 11 4,655 7,186
Net Assets 3,705 940 11 4,655 7,186
The funds of the Charity
Endowment Funds 0 0 11 11 11
Restricted 0 940 0 940 920
Unrestricted 3,705 0 0 3,705 6,255
Total Funds 9 3,705 940 11 4,655 7,186

These financial statements and accompanying notes were approved by the Trustee and signed on its behalf by:

Mr Craig Carter Interim Chief Financial Officer

Date: 23rd January 2024

NorthCare Charity Annual Report 2022/23

Page 23

STATEMENT OF CASH FLOWS to 31 March 2023

Cash flow from operating activities
Operational surplus/deficit
Dividends, interest and rents from investments
Transfer of Pennine Investments
(Increase)/Decrease in Debtors
Increase/(Decrease) in Creditors
Net cash generated from operating activities
Dividends, interest and rents from investments
Proceeds from sale of investments
(Increase)/Decrease in stockbroker account
Purchase of investments
Gain on the sale of investments
Net cash provided by investment activities
Change in cash equivalents during the reporting period
Cash and cash equivalents at the start of the period
Cash and cash equivalents at the end of the period		 31st March
31st March
2023
2022
£000
£000
(2,149)
2,326
(172)
(110)
0
(1,475)
(6)
6
2,669
157
342
904
172
110
840
654
85
(102)
(1,030)
(902)
135
376
203
137
545
1,041
1,787
746
2,332
1,787

NorthCare Charity Annual Report 2022/23

Page 24

Notes to the accounts

1. Accounting Policies

a) Basis of Preparation

The financial statements have been prepared under the historic cost basis of accounting, with the exception of investments which are included at market value.

The accounts (financial statements) have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019.

The accounts are prepared on a going concern basis. The Trustee considers that there are no material uncertainties about the Charity's ability to continue as a going concern. There are no material uncertainties affecting the current year’s accounts.

In future years, the most significant risks identified are possible losses from the fall in the value of the investments and the level of reserves available to mitigate the impact of such losses. These have been carefully considered and there are procedures in place to regularly review the investment policy and to ensure that both spending and financial commitments remain in line with income.

b) Funds Structure

Restricted funds are those which are to be used in accordance with specific restrictions imposed by the donor. Where the restriction requires the gift to be invested to produce income, but the Trustee has the power to spend the capital, it is classed as expendable endowment. Where the Trustee must permanently maintain the whole fund, it is known as a permanent endowment. The financial statements combine expendable and permanent endowment funds for the purposes of financial reporting.

Unrestricted income funds comprise those funds which the Trustee is free to use for any purpose in furtherance of the Charity's objects. Unrestricted funds include designated funds, where the donor has made known their non-binding wishes or where the Trustee, at its discretion, has created a fund for a particular activity (or activities) in the future.

The major funds held in each of these categories are disclosed at Note 9.

NorthCare Charity Annual Report 2022/23

Page 25

c) Incoming resources

All incoming resources are recognised once the Charity has entitlement to the resources, it is probable that the resource will be received and the monetary value can be measured with sufficient reliability.

d) Resources Expended

Expenditure is recognised when a liability is incurred. Grant commitments are recognised when a constructive obligation arises that results in payment being probable.

Grants payable are payments made to third parties in the furtherance of the Charity's objectives. They are accounted for on an accruals basis where the conditions for their payment have been met or where a third party has a reasonable expectation that they will receive the grant e.g. when they have met all the conditions of the grant including receipt of the goods or services.

e) Irrecoverable VAT

Irrecoverable VAT is charged against the category of resources expended for which it was incurred

f) Allocation of overheads and support costs

Overhead and support costs have all been apportioned between Charitable Activities and Governance Costs (Note 4).

The costs attributed to Charitable Activities have been further apportioned in proportion to total spend.

g) Costs of generating funds

The costs of generating funds consist of salaries and non-pay costs of the fundraising team and investment management costs.

h) Charitable activity

Costs of Charitable Activities comprise all costs in pursuit of the charitable objects of the Charity. These costs comprise direct costs and apportionment of overheads.

NorthCare Charity Annual Report 2022/23

Page 26

i) Governance costs

Governance costs comprise all costs incurred in the strategic management of the Charity and ensuring compliance with statutory requirements. These costs include costs related to statutory audit and those overhead and support costs not apportioned to charitable activity.

j) Research costs

Research costs comprise grants made for the purpose of non-commercial research carried out within the Trust. All research related expenditure is applied to the Expenditure on Charitable activities section of the Statement of Financial Activities.

k) Fixed asset investments

Investments are stated at fair value (market value) as at the balance sheet date. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

l) Pooling scheme

An official pooling scheme is in operation covering all funds registered under the Charity’s ‘Umbrella’ registration.

The scheme was registered with the Charity Commission on 17 March 1998

m) Realised gains and losses

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and original book cost. Unrealised gains and losses are calculated as the difference between the market value at the Statement of Financial Position date and the opening market value (purchase date if later).

n) Debtors

Debtors are amounts owed to the charity. They are measured on the basis of their recoverable amount.

o) Creditors

Creditors are amounts owed by the Charity.

They are measured at the amount that the Charity expects to have to pay to settle the debt.

Amounts which are owed in more than a year are shown as long term creditors.

NorthCare Charity Annual Report 2022/23

Page 27

p) Financial Instruments

The measurement bases and accounting policies in relation to basis financial instruments are discloses in the accounting policies for investments, debtors and creditors.

q) Critical accounting judgements and key sources of estimation uncertainty

Key sources of estimation and uncertainty

Valuation of fixed asset investments

As at 31 March 2023 Investec Wealth Management and RBC Brewin Dolphin provided a valuation of the Charity's investment portfolios that have been reported in these accounts. These valuations are based on the latest mid closing price quoted on the stock market or by the fund manager.

Accruals for expenditure not invoiced at the reporting date

At the end of the financial year, the Charity may have received goods and services which have not been invoiced at the reporting date. In these circumstances, an estimated value of the cost is included in the Charity's reported financial results. In some cases the estimated value is based on the quoted value provided by the supplier when the goods were ordered; in other cases, the charge may be estimated based on methods such as the number of hours of services provided or the last price paid for the same goods or service.

Apportionment of income and costs of generating funds across charitable activities

The net income earned by and costs of generating charitable funds including Trusteeship, financial services and research administration are apportioned across the charitable activities based on the average value of each fund during the year.

NorthCare Charity Annual Report 2022/23

Page 28

Note 2 – Related Party Transactions

The Northern Care Alliance NHS Foundation Trust is the Corporate Trustee of the Charity. During the year none of the Trust's Directors, Governors or Senior Trust staff or parties related to them were beneficiaries of the Charity or received honoraria, emoluments or expenses in the year.

The representatives of the Corporate Trustee (Board members) are remunerated by Northern Care Alliance NHS Foundation Trust for which a recharge is made to the Charity based on time spent on charitable funds matters which is disclosed as part of the costs of the Charity in Note 4.

The Charity makes use of the Northern Care Alliance NHS Foundation Trust finance and procurement systems. The Trust processes payments for invoices through its bank as part of the procurement system.

The total amount owed by the Charity to the Trust for invoices and recharged staff is given in note 8 with the balance settled between the organisations on a regular basis.

The Charity has not purchased Trustee indemnity insurance.

Note 3 – Voluntary Income

Donations from individuals
Corporate donations
Legacies		 Unrestricted Restricted
Total
Total
Funds
Funds
2022/23
2021/22
£000
£000
£000
£000
198
0
198
627
944
0
944
37
456
1
457
234
1,599
1
1,600
898

NorthCare Charity Annual Report 2022/23

Page 29

Note 4 – Analysis of Expenditure

Charitable activities;
Research
Purchase of equipment
Staff education and welfare
Patient education and welfare
Governance costs
Expenditure on charitable activities
Expenditure on raising funds
Investment Management Costs
Fund Raising Salaries
Fund Raising Non Pay Costs
Expenditure on raising funds
Total resources expended		 31 March 2023 31 March 2022
Direct
resources
expended
Share of
administration
costs
Total
resources
expended
Total
resources
expended
£000s
£000s
£000s
£000s
140
1
141
47
1,184
13
1,197
19
32
0
32
112
2,106
23
2,129
156
0
9
9
12
3,462
46
3,508
346
29
0
29
28
315
0
315
208
67
0
67
0
412
1
412
237
3,874
46
3,921
582

Note 4 – Analysis of Approved Bids with Outstanding Conditions

Centre for Clinical and Care Research posts
Salford research Data collection
Physiotherapy Amputee Class/Rehab-
Femurrett kit
Specialist seating
Chemotherapy Cold cap machine		 Orig. bid.
Incurred to
31/03/2023
Outstanding
£000s
£000s
£000s
402
21
381
50
-
50
6
-
6
9
-
9
42
-
42
510
21
489

The above bids have been approved in principle by the Charitable Funds Committee subject to receipt. The costs are recognised only when the goods/ services have been received by the Trust.

NorthCare Charity Annual Report 2022/23

Page 30

Note 5 – Analysis of Fixed Asset Investments

Movement in fixed asset investments
Market value brought forward
Transfer of Investments from Pennine
Additions at cost
Disposals at book cost
Net gain/(loss) on revaluation
Increase/(Reduction) in cash held at Investec and Brewin
Market value at 31st March
Historic cost at 31st March
Fixed asset investments
UK Listed Investments (Including Fixed Interest & Property)
Outside of UK investments listed on the stock exchange
Cash held as part of investment portfolio
Total at 31 March
Net gains and losses on investment assets
Unrealised gain/(loss) on revaluation
Realised gain/(loss) on sale of investments
Total		 Total
Total
2022/23
2021/22
£000
£000
6,004
4,382
0
1,475
1,030
902
(840)
(654)
(516)
(203)
(85)
102
5,593
6,004
4,840
5,102
Total
Total
2022/23
2021/22
£000
£000
2,824
3,365
2,662
2,447
5,486
5,812
107
192
5,593
6,004
Total
Total
2022/23
2021/22
£000
£000
(516)
(203)
135
376
(381)
173

Note 6 – Analysis of Income from Investments

Income received from quoted investments
Interest on cash held on deposit and at bank
Total		 Total
Total
2022/23
2021/22
£000
£000
134
110
38
0
172
110

NorthCare Charity Annual Report 2022/23

Page 31

Note 7 – Analysis of Current Assets

Debtors under 1 year
Other debtors
Total
Cash at bank and in hand
Lloyds TSB - Current Account
Government Banking Service
Petty Cash
Total		 Total
Total
2022/23
2021/22
£000
£000
21
15
21
15
Total
Total
2022/23
2021/22
£000
£000
1,096
987
1,232
796
3
3
2,332
1,787

Note 8 – Analysis of Current Liabilities

Creditors under 1 year
Northern Care Alliance Foundation Trust
Accruals
Total		 Total
Total
2022/23
2021/22
£000
£000
3,247
592
43
29
3,290
621

NorthCare Charity Annual Report 2022/23

Page 32

Note 9 – Analysis of Charitable Funds – Unrestricted Funds

The Charity has 286 unrestricted funds Individual funds with material balances (greater than £30K) are listed below.

Unrestricted Funds
Specfic Donations General
Hope General
Roh General Fund
Centre for CCR
Renal Services Fund
Pennine General Fund
Heart Care
Trauma & Orthopaedics
Neurosurgery
Pennine Covid-19 Donations
Haematology Research Fund
Neuro Theatre
Umbrella Charity
Haematology Department
Neurology
Breast Fund
Haematology Unit (Ward F1
Intestinal Failure Department
Icu Patients
Urology Training & Equip
Reache North West
Leukaemia Fund
Anaesthetics Department Fund
Movement Disorder Fund
Diabetics Dept Nurses
Stroke Unit Fund Provhosp
Dermatology Department
Rochdale Education Centre
Emergency Medicine Fund
Gastro Research Fund Endo
Salford Covid-19 Donations
Oldham Community Adults
Oldham Community Children
Neuro Enterology
Acute Stroke Unit
Neuro Research Fund
Other		 Opening
Fund
Incoming
Resources
Gains and
Closing
balance
Transfer
resources
expended
losses
Balance
£000
£000
£000
£000
£000
£000
1,770
(7)
149
(35)
(399)
1,477
1,027
(432)
815
(3,182)
0
(1,773)
5
0
387
(1)
0
391
0
402
0
(24)
0
379
235
0
16
(2)
0
248
239
0
0
(2)
0
238
149
0
16
(1)
0
164
113
0
41
(1)
0
153
130
0
1
(5)
0
126
117
0
0
(7)
0
110
109
0
0
(1)
0
109
102
0
4
(1)
0
106
105
0
0
(1)
0
104
87
0
3
(2)
0
88
78
0
9
(1)
0
86
81
0
0
(1)
0
80
74
0
5
(2)
0
77
57
0
13
(0)
0
70
67
0
3
(2)
0
67
65
0
0
(0)
0
65
65
0
0
(1)
0
64
64
0
0
(0)
0
64
60
0
0
(0)
0
60
60
0
0
(0)
0
59
54
0
0
(0)
0
54
50
0
5
(3)
0
52
48
0
0
(0)
0
48
45
0
0
(0)
0
45
42
0
4
(5)
0
41
7
0
33
(0)
0
40
12
0
106
(79)
0
39
38
0
0
(0)
0
38
32
0
0
(0)
0
32
31
0
0
(0)
0
31
30
0
1
(0)
0
31
31
0
2
(2)
0
31
974
37
137
(533)
0
615
6,255
0
1,747
(3,897)
(399)
3,705

NorthCare Charity Annual Report 2022/23

Page 33

Note 9 – Analysis of Charitable Funds – Restricted Funds

Restricted funds
Neurosurgery
Restricted Legacies
John Mayo Legacy
Holding Account - Restricted
Prostate Scanner Appeal E
Henry Richardson
Endowed Funds Accumulated
Critical Care J Chadwick
Hospital Palliative Care		 Opening
Fund
Incoming
Resources
Gains and
Closing
balance
Transfer
resources
expended
losses
balance
£000
£000
£000
£000
£000
£000
427
0
10
(5)
8
441
161
0
5
(2)
3
167
156
0
4
(14)
3
148
114
0
3
(1)
2
118
32
0
1
(0)
1
33
21
0
1
(0)
0
22
4
0
0
(0)
0
5
4
0
0
(0)
0
4
1
0
0
(0)
0
1
920
0
24
(23)
18
940

Note 9 – Analysis of Charitable Funds – Permanent Endowment Funds

The Charity has six small endowment funds all of which were given by an anonymous donor. The purposes of these funds are to provide a prize, from the interest earned, in recognition of the achievement of junior members of staff.

Post Grad Centre
Cardio Respiratiry
Elderly Care
Immunology
Haematology
John Harvey Green Fund		 Capital
Endowed
Capital
Endowed
2022/23
2021/22
£000
£000
1.5
1.5
2.0
2.0
2.0
2.0
1.5
1.5
1.5
1.5
2.5
2.5
11.0
11.0

NorthCare Charity Annual Report 2022/23

Page 34